Lunate, Brookfield to invest $1B in Saudi, UAE residential real estate

Riyadh city

Lunate, an Abu Dhabi-based global alternative investment manager, announced a joint venture (JV) with Brookfield Asset Management to invest in the residential real estate sector in Saudi Arabia, the UAE and other Middle East countries, with a total expected value of $1 billion.

The joint venture will focus on developing high-quality residential properties, both for sale developments and build-to-sell properties, Lunate said in a statement.

For more news and details on the projects

Lunate will commit a significant cornerstone investment to the JV and will leverage its regional network and capabilities to help drive the JV’s commercialization and fundraising efforts. This is in line with its strategy to develop differentiated investment partnerships and vehicles targeting compelling opportunities in high-growth sectors.

The JV will establish a dedicated team to develop and manage these assets. It aims to capitalize on favorable trends in the Middle East’s residential real estate market, underpinned by strong economic performance and robust population growth.

The region continues to draw global interest as an emerging investment destination, demonstrated by the UAE’s position as the top location for wealthy migrants in 2024.

Prime residential properties in the region continue to experience strong capital appreciation and positive rental growth with low vacancies, while property prices remain highly competitive in comparison to other global cities, enhancing their investment appeal, Lunate said.